Corporation
A corporation is a country's and an enterprise's main source of income. Corporations give a percentage of their profit to their controlling country through profit transfers and also through a corporation tax. Corporation also are what make Simcountry's economy stable and functional. All products that are used or purchased were produced by a corporation, and often one owned by a player, all though some are produced by C3s (computer controlled countries). There are two types of government owned corporations. These are state corporations and National corporations. The only difference between the two types is that national corporations cannot be purchased by an enterprise. Enterprise CEO's can purchase state corporations from governments. When a state corporation is purchased by an Enterprise, it becomes a private corporation. You may decide to keep several industries under control of the state. These may be weapon factories, or some high value corporations. The reasons are up to the president. It is possible to change the status of a corporation and make it a national industry. However, only twenty corporations may be national. If you already have twenty national corporations and you want to make a different corporation a national industry, you must first change the status of one of the national industries into a state corporation. State corporations, including the national corporations, pay taxes to the government. The percentage of the tax payments can be changed but very high taxes will destroy the capability of the corporations to function. In addition, state corporations pay some of their profit after tax to the corporation owner, which is again the government. Also the percentage of these payments may be set by the president. If you want to prevent any takeover of any of your corporations, you can block CEOs. All your corporations will remain state corporations. We strongly advise against it as the profits of state corporations and mainly their contributions to the state, are lower than the contributions by private and public corporations Types of Corporations There are National, State and Private corporations. National National industries include all the corporations that create essential products and the player wants to keep the ownership to the state. Other corporations (state corporations), might be purchased by enterprises and be owned by others. National corporations can not be purchased. There are users who want to prevent the takeover of corporations with low market value and they turn them into national corporations. Others do the opposite and try to protect their best corporations. Having private corporations in your country brings many advantages. Private corporations are more profitable and pay much more into the country's economy. National corporations should not limit the capacity of the country for further develop. State State corporations are owned by the state. They pay taxes to the government and in addition, they pay a percentage of the remaining profit to the owner which is again, the government. These corporations may be bought by an enterprise and become private corporations. The government can not prevent such a takeover but it can try to make the corporation very successful and increase its market price to a very high level that may either deter a takeover or if a takeover is does take place, it will bring the country a major income from the sale. Only national corporations are protected against a takeover. State corporations can also perform an IPO and become Public corporations. Private Private corporations are owned by an enterprise. These corporations reside of course in a country but that country does not own the corporation. The corporation pays salaries to workers in the country and also pays taxes on its profits. In addition, private corporations pay part of their revenue to the country. Private corporations are beneficial for the country as they create many jobs and high income. Private corporations can upgrade to a higher level than state corporations and as a result, they become more profitable. In addition, private corporations make it possible for the country to rehabilitate people who are disabled and return them into the job market. They also function in stimulating house wives to return to the job market and the result is a higher participation of the population and a far better potential to develop the country even further. Building Corporations To create a corporation you need to have building capacity, in terms of production plants. There are currently 14 product groups in which you can select products that your corporation will produce. Building Capacity To build a corporation, you need a production plant. An request for a new corporation will directly result in an order for a production plant. If you already have a production plant, the corporation will be delivered faster. Having a production plant means in fact that you have the capacity to build a corporation available now. Sometimes it is good to order a production plant in advance. Production Plant Each corporation needs a production plant. When you build a new corporation, a production plant is constructed. Some times the production plant is a large factory, some times it is a huge farm with all the equipment needed. You may also set up a corporation that builds construction plants. In a growing world economy, they will be needed. Managing Corporations Much of the game consists of managing corporations, better known as corps. This is a subject of numerous opinions and endless debates. Here are the most basic principles: 1. During the first decade or so of your country, have no more than two corps per million population. More than that and there probably won't be enough workers to keep the corps fully staffed. 2. Remember that education is crucial for getting enough skilled workers. Build a strong educational infrastructure and periodically update education priorities. 3. Keep in mind that the smaller your military is, the more workers you will have available for your corps. Soldiers are drafted from your low level workers while officers are drafted from your medium level managers. 4. Primarily produce one or more products in huge demand: services, household products, high tech services, electric power, computers, oil, electronic components, construction. The products in highest demand have the highest profit margins, although profitability will fluctuate. 5. Upgrade your corps. Effectivity upgrades allow a corp to produce the same quantity of products with fewer employees. (Effectivity upgrades are good for country corps but not cost-effective for ceo corps.) Quality upgrades allow a corp to produce higher quality products. 6. An effective goal is to have corps that produce a monthly profit of at least $1 billion each. You can view the settings of such profitable corps by looking at the left-hand menu of your country homepage, clicking on "Shares," then clicking on "buy shares," then studying the most profitable corps of different industries. Production and Hiring The production and hiring menu enables you to set the levels of production and hiring in terms of percentages. 100 means that the corporation is producing at full capacity and employing all the workers it needs, respectively. Corporations may overproduce, with a production level over 100, but may not over hire, with a hiring level over 100. Production is influenced by wages and your country's welfare index. Trade Strategies Contracts The purpose of accepting or canceling Corporation Contracts is that it is a simulation mechanism that allows you to accept corporation contracts either from your own Corporations or from a Common Market Order (if you are a member of a Common Market). Creating contracts is for another subject, but tackling Accepting or Canceling Contracts is easy. Simply login to your account, and when ever you get a new contract (even between your own corporations) you will get a in game mail that will have a link to the contract offer. Simply click it, and then when you are on the contract acceptance page, review the contract offers, put a checkmark next to the ones you wish to accept (if there is only one, then you will only have to click the Accept or Reject link that will be displayed on the same line as the offer. If there are multiple contracts then you checkmark all the contracts you wish to accept and then click the accept contract link. Your corporation contracts will now be live. To cancel them you do the same process, and checkmark all the contracts you wish to cancel, then click the cancel contract link, and then confirm it on the next page. You can also choose to cancel all contracts at one time if that is what you wish to do. Product Groups Government * Elementary schools * Highschools * Hospitals * Road Maintenance * Roads * Train Tracks * Traintracks maintenance * Universities * Water maintenance * Water treatment facilities Industry * Air Transport * Aircraft Fuel * Airplanes * Airports * Batteries * Boats * Books And Newspapers * Bricks * Building Materials * Car Engines * Cargo Airplanes * Cars * Cement * Chemicals * Clothes * Displays * Electric Components * Electric Motors * Furniture * Gasoline * Glass * Home Equipment * Household Products * Industrial Equipment * Jewelry * Luxury Goods * Machine Parts * Medical Equipment * Medical Materials * Military Supplies * Paper * Plastics * Plutonium * Production Plants * Robotics * Solid Missile Fuel * Steel * Trucks * Weapon Grade Uranium Defensive * Anti Aircraft Missile Batteries * Anti Aircraft Missiles * Armored Vehicle Missiles * Armored Vehicles * Defense Fortifications * Defensive Military Airports * Defensive Military Bases * Defensive Missile Batteries * Defensive Missiles * Destroyer Torpedoes * Destroyers * Helicopter Missiles * Helicopters * Interceptor Missiles * Interceptors * Jeeps * Light Artillery * Light Artillery Shells * Light Tank Ammunition * Light Tanks * Missile Interceptor Batteries * Missile Interceptors * Navy Interceptor Missiles * Navy Interceptors * Navy Missile Batteries * Navy Missile Interceptor Batteries * Navy Missile Interceptors * Navy Missiles * Nuclear Defense Batteries * Nuclear Defense Missiles * Radar Planes Offensive * Aircraft Carriers * Anti Tank Missile Batteries * Anti Tank Missiles * Attack Boats * Attack Destroyer Torpedoes * Attack Destroyers * Attack Drone Missiles * Attack Drones * Attack Helicopter Missiles * Attack Helicopters * Conventional Missile Batteries * Conventional Missiles * Cruise Missiles Ship Based * Cruise Missiles Ships * Fighter Missiles * Fighter Planes * Guided Missiles * Guided Missiles Frigates * Heavy Armored Vehicles * Heavy Artillery * Heavy Artillery Shells * Heavy Jeeps * Heavy Tank Ammunition * Heavy Tanks * Helicopter Carriers * Land Based Cruise * Land Based Cruise Batteries * Land To Sea Missile Batteries * Land To Sea Missiles * Laser Guided Bombs * Long Range Radar Planes * Mid Range Missile Batteries * Mid Range Missiles * Military Transport Airplanes * Navy Base * Navy Fighter Missiles * Navy Fighter Planes * Navy Helicopter Missiles * Navy Helicopters * Off Anti Aircraft Missile Batteries * Off Anti Aircraft Missiles * Offensive Military Airports * Offensive Military Bases * Precision Bombers * Precision Bombs * Rapid Deployment Ammo * Rapid Deployment Units * Seals Ammo * Seals Units * Special Forces Missiles * Special Forces Units * Stealth Bombers * Submarine Torpedoes * Submarines * Supply Ships Strategic * Chemical Missile Batteries * Chemical Missiles * Nuclear Missile Batteries * Nuclear Missiles * Nuclear Submarine Missiles * Nuclear Submarines * Strategic Airports * Strategic Bombers * Strategic Bombs * Strategic Military Bases * Tactical Nuclear Weapons * Tactical Weapons Launchers Mining * Aluminum * Carbon * Coal * Copper * Gas * Gold * Iron * Lead * Lithium * Mercury * Minerals * Oil * Platinum * Potassium * Rubber * Sand * Selenium * Silver * Stone * Sulfur * Uranium * Wood * Zinc Agriculture * Beans * Cattle Feed * Cocoa * Corn * Cotton * Peanuts * Soybeans * Wheat * Wool Food * Bread * Butter * Cattle * Cheese * Chocolate * Coffee * Eggs * Fish * Fruit * Fruit Juice * Meat * Meat Products * Milk * Milk Products * Other Food Products * Potatoes * Poultry * Rice * Spices * Sugar * Tea * Vegetables * Wine HighTech * Advanced Effectivity Products * Advanced Quality Products * Airforce Maintenance * Ammunition Components * Ammunition Quality Upgrades * Assets Maintenance * Computers * Def Weapons Maintenance * Electronic Components * Factory Maintenance * High Tech Services * Internet * Military Bases Maintenance * Mobile Devices * Navy Vessels Maintenance * Off Weapons Maintenance * Pharmaceutical Products * Software * Str Weapons Maintenance * Weapon Grade Components * Weapon Quality Upgrades Utilities * Cable TV Services * Electric Power * Nuclear Power * Telephone Construction * Construction Services * Military Services * Services Recreation * Shows * Sports * Vacation Space Industry * Cargo Shuttles * SC Maintenance Units * Shuttle Boosters * Shuttle Components * Shuttle Engines * Shuttle Extentions * Shuttle Fuselage * Space Centers Private Corporations Private corporations are owned by a CEO of an enterprise. Enterprises are large groups of corporations that reside in different countries in the world. An enterprise may not start a new corporation in a country without the president's knowledge or permission. The CEO does not need any permission to start a corporation in a "computer controlled" countries (C3). An enterprise owner may also bid to purchase a state or a private corporation in any country. The bid price starts at the market value of the corporation but other enterprise players may bid for the same corporation and the price may change. The highest bidder will become the owner. The bidding period is around 4 game months. Presidents can block CEOs from bidding for corporations in their country. Private corporations function in the same way as state owned corporations. They pay a percentage of their income as taxes to the government of the country where they reside. In addition, private corporations pay a percentage of their revenue (percentage of the raw income from sales) to the country where they reside. The percentage depends on the quality level of the corporation. This payment represents a major income for the country and is frequently the reason why country leaders invite CEOs to build and purchase corporations in their country. When viewing the corporations pages, the group of private corporations is listed separately. The country president is not able to manage the private corporations in his country. It is the enterprise CEO who is managing these corporations. The CEO has a disadvantage when managing his corporations. Shortage of workers can be corrected by tuning the education system in the country to produce the professionals needed for the industry. Only the country president is able to do this as he is managing the education system in his country. Enterprises have their corporations residing in many countries (Not more than six can be purchased in a single country) and they are not able to influence the education system in any of these countries. As private corporations are major contributors to the economy in the country, it is in the presidents' interest to tune the education system in a way that will also benefit the private corporations in the country. How do I make my corporation private? Corporations are private by default, but if you happen to acquire a public corporation, you can only make it private by controlling 100% of the shares. In order to do this, you must place buying orders for the corporation's shares on the stock market. How do I make my private corporation public? In order to make a private corporation public, you must perform an initial public offering, which essentially makes the corporation's stock, which you previously owned 100% of, available on the open market for other players to purchase. Hostile takeovers & Nationalization The president of a country can nationalize your corporation at any time, provided that the president is a Premium Member. When this happens, the country will take full ownership of your private corporation, and will pay you its market value in return. Other CEOs can also perform a hostile takeover of your private corporation by placing a bid that is equal to or greater than its market value. There is nothing you can do to stop this, short of asking the bidding player to retract the bid. See Also * Enterprise Category:Corporation Category:Economics